1.2 Readiness Check

What central operational and strategic principle does Module 1 highlight regarding SurMedia’s initial transition into a global project?

Strategic, cultural, operational, and financial challenges emerge simultaneously and are inseparably linked.

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International challenges normally occur sequentially, allowing management to resolve one functional area before addressing the next.

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Financial risk should be managed first because operational and cultural issues become relevant only after funding is secured.

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Existing domestic routines remain sufficient during the early stages of internationalization if the company has strong technical competence.

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According to Edward T. Hall’s framework, how is the US producer’s communication and time orientation during the kick-off meeting best characterized?

High-context communication and polychronic time orientation.

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Low-context communication and monochronic time orientation.

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High-context communication and monochronic time orientation.

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Low-context communication and polychronic time orientation.

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Which team members in the SurMedia case operate primarily with a polychronic concept of time? (Select ALL that apply)

The US producer.

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The Spanish director.

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The Moroccan location scout.

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The German financial controller.

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The Dubai financing partner, whose main concern is milestone-based disbursement discipline.

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What central strategic dilemma from Prahalad and Doz is negotiated between Mateo and Sofia when they debate production standards?

Cost leadership versus product differentiation.

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Global standardization versus local adaptation.

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Vertical integration versus outsourcing.

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Financial hedging versus political-risk insurance.

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According to the market-entry logic discussed in the case, what is the primary trade-off of establishing wholly owned subsidiaries instead of strategic alliances?

Subsidiaries reduce capital commitment but increase dependence on external partners.

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Subsidiaries provide greater operational control and reduce partner dependency, but require higher capital commitment and offer less flexibility.

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Strategic alliances provide the same degree of hierarchical control as subsidiaries while eliminating governance complexity.

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Strategic alliances normally require more fixed investment and longer setup times than wholly owned subsidiaries.

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Which operational trade-offs or governance risks accompany Sofia’s preference for strategic alliances in Spain and Morocco? (Select ALL that apply)

Greater governance complexity across organizational boundaries.

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Exposure to local-partner unpredictability and performance differences.

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Higher fixed capital investment than building proprietary subsidiaries.

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Greater dependence on inter-organizational trust and alignment.

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Automatic loss of access to local networks because alliance partners remain organizationally independent.

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Which principle from Alfred Chandler is illustrated by SurMedia’s move from a flat regional hierarchy toward a matrix organization?

Strategy follows structure.

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Structure follows strategy.

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Culture follows governance.

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Control follows ownership.

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Why did the US producer’s direct public reprimand of the Spanish director cause such a severe operational breakdown?

The reprimand violated a formal Spanish labor-law requirement that all criticism be delivered in writing.

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A direct public reprimand that may be normal in a lower-power-distance, task-oriented context was perceived as a serious loss of face and attack on professional dignity.

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The Spanish director interpreted the reprimand primarily as a technical disagreement over camera scheduling.

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The breakdown was caused mainly by uncertainty about who controlled the production budget.

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What fundamental cultural differences characterize the email dispute between the German financial controller and the Moroccan partner over filming-permit expenses? (Select ALL that apply)

The German controller uses a task-oriented, low-context logic based on formal contracts, documentation, and rules.

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The Moroccan partner uses a relationship-oriented, high-context logic based on trust and flexible problem solving.

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The German controller deliberately seeks to bypass local compliance requirements by relying on the written contract.

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Both parties act rationally within their respective cultural operating systems but interpret the basis of cooperation differently.

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The Moroccan partner rejects written agreements entirely and insists that all international business be conducted without contracts.

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How did political unrest in Morocco directly threaten SurMedia’s project liquidity?

It immediately devalued the Argentine peso and increased SurMedia's domestic payroll costs.

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The suspension of filming endangered a crucial milestone payment from Dubai that was tied to completion of the Moroccan production phase.

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It caused the US streaming service to cancel all international distribution rights.

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It forced SurMedia to repay the entire project budget before production could resume.

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Which distinct risk categories became visible simultaneously after filming was halted in Morocco? (Select ALL that apply)

Political risk arising from unrest and the resulting lockdown.

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Transactional financial risk arising from Moroccan-dirham costs against a US-dollar project budget.

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Ongoing operational cost leakage, including unused hotel bookings.

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Systemic failure of the international banking-clearing infrastructure.

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Patent-infringement risk arising from unauthorized copying of the film production process.

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Why did the unannounced auditor visit concerning working hours on the Spanish set pose a potentially existential threat to SurMedia’s contract?

It required SurMedia to re-register its intellectual property before filming could continue.

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Noncompliance with labor and ethical standards could breach client compliance requirements, damage reputation, and trigger contractual penalties or termination.

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It automatically converted the production into a government-regulated public project.

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It prevented international crew members from working in Spain regardless of their contracts.

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Which statement is NOT one of the three strategic imperatives derived from the SurMedia synthesis?

International management requires thinking in systems and understanding interdependencies across strategy, structure, people, and risk.

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The human dimension, including intercultural leadership and professional GHRM, is a core managerial competence.

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Sustainable global performance requires proactive architecture rather than primarily reactive crisis management.

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Once core processes are standardized centrally, intercultural leadership and local adaptation become secondary because consistency should take precedence over contextual differences.

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Which elements belong to the professional Global Human Resource Management architecture that SurMedia needs after the conflicts in Module 3? (Select ALL that apply)

Systematic recruitment of internationally experienced specialists such as cross-border entertainment lawyers and co-production accountants.

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Intercultural preparation and development for international teams and leaders.

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Adaptable international compensation and legally compliant multi-jurisdictional contract systems.

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Elimination of local cultural orientation so that all personnel follow the home-country model.

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Reliance on informal staffing arrangements so that international specialists can be hired quickly without standardized HR processes.

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What was SurMedia’s organizational and market scope before it unexpectedly won the US streaming-series contract?

A multinational corporation with established subsidiaries in North America and Europe.

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A regionally oriented Argentine company serving mainly Latin American clients, with little international activity and no established global value-creation architecture.

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A state-supported audiovisual institution focused primarily on cultural preservation.

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A Spanish-Argentine joint venture already operating a global production network.

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